Just to nudge things back toward the impact of Bush's reelection, lets take a look at just a couple of developments which some folks might have missed in the flury of other news this week.
US Economy: June Jobless Rate Falls, Payrolls Rise
U.S. Budget Deficit May Drop to $325 Bln This Year, Agency Says
The jobless rate now stands at 5.0%, the lowest it has been in 5½ years. Average monthly job growth for 2005 to date is 181,000, in line with the full-year average of 183,000/mo set for 2004. Month-over-Month or Quarter-over-Quarter, job growth has been robust, consistent, and sustained. Real incomes, following the year-plus-long trend, rose last month, with the overall gain as of May this year 7% over the same month last year. Despite the impact of escalating oil costs, and the resultant depressive effect on auto sales, retailers have announced June saw the largest sales gain in over a year, maintaining a record pace. GDP is growing at an average greater than that which pertained over the previous 3 decades. Though consumer spending remains consistently robust, total consumer credit has fallen by the largest amount in over 14 years.
Enhanced tax revenue due to the robust economy have resulted in a nearly 25% reduction in the growth of the deficit (which, BTW, remains, as percentage of GDP, well below historic figures, and within the norm for the entire post-WWII period). Tax revenue has increased 15% over the past year, while spending has increased by 7%. For the 1st 3 quarters of the 2004/5 fiscal spending year, the budget deficit stands at an estimated $251 Billion verus the $327 Billon recorded a year ago. For June, '05, the monthly account balance actually showed a $21 Billion surplus. The dollar continues a steady increase versus other world currencies, the US securities and commodities markets are both stable and strong.
America is working more, producing more, earning more, and contributing more tax revenue than ever before in history, and the American consumer not only is buying more than ever in history, but using historically less consumer credit to do so. Interest rates, tax rates, and inflation rates are at or near historic lows. US home ownership is at an unparallelled level, and the housing market remains historically strong.
In other developments, Iraq and Afghanistan have emergent democratic governments, Syria is out of Lebanon, and real progress is being made in the Israel/Palestine theater (despite the intransigence of some Palestinian factions). North Korea has agreed to resume talks.
What a disaster. I can see why The Democrats are upset with the aftermath of the election. Its all Bush's fault.
